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Dedication
Disclaimer
Abbreviations
Please Respect Our Hard Work and DO NOT Distribute Unlicensed Copies of This Book
Foreward
Preface
Introduction
1. The Profit & Loss Statement
2. Computation of the Cost of Goods Sold
3. Section 61(a) - Gross Income
4. Section 162 - Deduction for Trade or Business Expenses
5. Section 199A - Qualified Business Income
6. Section 280E - Disallowance of Trade or Business Expenses
7. Section 263A - Capitalization and Inclusion in Inventory Costs of Certain Expenses
8. Section 471 - Allocating Costs to Inventory
9. Banking
10. Selection of Business Entity
11. Separation of Businesses
12. The QuickBooks COGS "Gotcha"
13. Is IRC Section 280E Unconstitutional?
14. What is the Current Status of the Industry?
15. What is NOT Working
16. Sales Tax and Excise Tax
17. Evolution of Modern Federal Income Tax
18. Legalization of Medical Marijuana
19. Legalization of Recreational Marijuana
20. Index to Tax Cases
21. Index to QuickStart Tags
Article I
Fifth Amendment
Eighth Amendment
Sixteenth Amendment
IRC Section 61(a) - Gross income defined
IRC Section 162(a) - Trade or business expenses
IRC Section 165 - Losses
IRC Section 263A - Capitalization and inclusion in inventory costs of certain expenses
IRC Section 280E - Expenditures in connection with the illegal sale of drugs
IRC Section 471 - General rule for inventories
Section 1.183-1(d) - Activity Defined
Section 1.471-1 - Need for Inventories
Section 1.471-2 - Valuation of Inventories
Section 1.471-3 - Inventories at Cost
Section 1.471-8 - Inventories of Retail Merchants
Section 1.471-11 - Inventories of Manufacturers
Revenue Procedure 2018-31 - Section 263A (2018)
Revenue Procedure 2018-40 (2018)
Revenue Procedure 2018-56 (2018)
Revenue Procedure 2018-31 - Section 471 (2018)
IRS CCAM No. 201504011
Chapter 1: Introduction and Overview of the Cash Intensive Business
Chapter 2: Pre-Audit and Background Review of the Tax Return
Chapter 6: Evaluating Evidence
Chapter 5: Examination Techniques
Chapter 4: Minimum Income Probes
Chapter 3: Initial Interview
Chapter 7: Digital Cash
Chapter 8: Underground Economy
Chapter 9: Bail Bonds
Chapter 10: Beauty Shops
Chapter 11: Car Wash
Chapter 13: Coin Operated Amusements
Chapter 14: Convenience Stores, Mini-Marts and Bodegas
Chapter 15: Laundromats
Chapter 16: Scrap Metal
Chapter 17: Taxicabs
Doyle v. Mitchell Brothers Company (1918)
James v. United States (1961)
Commissioner v. Tellier (1966)
Leary V. United States (1969)
Commissioner V. Groetzinger (1987)
US V. Oakland Cannabis Buyers Cooperative (2001)
Gonzales V. Raich (2005)
Cohan v. Commissioner (1930)
Wood V. United States (1989)
Olive V. Commissioner (2015)
Feinberg v. Commissioner (2015)
Green Solution Retail, Inc. v. United States (2017)
Canna Care V. Commissioner (2017)
Alpenglow Botanicals, LLC V. United States (2018)
High Desert Relief Inc. V. United States (2019)
Feinberg V. Commissioner (2019)
Wood V. United States (1988)
US v. Marin Alliance for Medical Marijuana (2015)
ALPENGLOW Botanicals, LLC V. United States (2016)
High Desert Relief V. Commissioner (March 31, 2017)
High Desert Relief V. Commissioner (April 11, 2017)
HIGH DESERT RELIEF, INC. V. United States (April 30, 2017)
High Desert Relief V. Commissioner (May 15, 2017)
Alpenglow Botanicals LLC V. US (2017)
Green Solution Retail, Inc. V. United States (April 24, 2019)
Medicinal Wellness Center LLC V. US (2019)
Green Solution, LLC V. United States (April 24, 2019)
Medicinal Wellness Center, LLC V. United States (April 24, 2019 Amended)
Champ V. Commissioner (2007)
Olive V. Commissioner (2012)
PATIENTS MUTUAL DBA Harborside V. Commissioner (2018)
Alternative Health Care Advocates V. Commissioner (2018)
NORTHERN CALIFORNIA SMALL BUSINESS ASSISTANTS V. COMMISSIONER (2019)
Edmondson v. Commissioner (1981)
Carter V. Commissioner (1984)
Styron V. Commissioner (1987)
Bender V. Commissioner (1988)
Mack V. Commissioner (1989)
Vasta V. Commissioner (1989)
Caffery V. Commissioner (1990)
Bratulich V. Commissioner (1990)
Browning V. Commssioner (1991)
Tobin V. Commissioner (1999)
Peyton V. Commissioner (2003)
Beck V. Commissioner (2015)
Canna Care V. Commissioner (2015)
Ibidunni V. Commissioner (2016)
Feinberg V. Commissioner (2017)
Jabari V. Commissioner (2017)
Alterman V. Commissioner (2018)
Loughman V. Commissioner (2018)
Patients Mutual dba Harborside V. Commissioner - Penalties (2018)
Memo - Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana - Ogden Memo (October 19, 2009)
Memo - Guidance Regarding the Ogden Memo in Jurisdictions Seeking to Authorize Marijuana for Medical Use - Cole Memo 1 (June 29, 2011)
Memo - Guidance Regarding Enforcement - Cole Memo 2 (August 29, 2013)
Memo - Guidance Regarding Marijuana Related Financial Crimes - Cole Memo 3 (February 14, 2014)
Memo - Policy Statement Regarding Marijuana Issues in Indian Country - Wilkinson Memo (October 28, 2014)
Memo - Marijuana Enforcement - Sessions Memo (January 4, 2018)
Rohrabacher-Farr Amendment (aka Rohrabacher-Blumenauer Amendment)
Letter - Guidance to the City Attorney of Oakland CA (February 1, 2011)
Letter - Guidance to Tribal Leader (March 23, 2011)
Letter - Guidance to Director of the Hawaii Department of Public Safety (April 12, 2011)
Letter - Guidance to Washington Governor (April 14, 2011)
Letter - Guidance to Montana State Legislature (April 20, 2011)
Letter - Guidance from Colorado Attorney General to Colorado Governor and Colorado General Assembly (April 26, 2011)
Letter - Guidance to Colorado Attorney General (April 26, 2011)
Letter - Guidance to Rhode Island Governor (April 29, 2011)
Letter - Guidance to Director of Arizona Department of Health Services (May 2, 2011)
Letter - Guidance to Commissioner of Vermont Department of Public Safety (May 3, 2011)
Letter - Guidance from New Hampshire Attorney General to New Hampshire State Senator (May 10, 2011)
Letter - Guidance to New Hampshire Attorney General (May 10, 2011)
Letter - Guidance to Maine Legislature (May 16, 2011)
FIN-2014-G001 - BSA Expectations Regarding Marijuana-Related Businesses
Letter 10
Acknowledgements
About the Author - Reece B. Morrel, Jr.
About the Publisher
Appendix - Drug Scheduling Information
Appendix - Sample QuickBooks Profit & Loss Statement for a Cultivation Facility
Appendix - Sample QuickBooks Profit & Loss Statement for a Manufacturing Facility
Appendix - Sample QuickBooks Profit & Loss Statement for a Retail Dispensary
Appendix - State Agencies
Resources
Glossary
Other Issues
QuickBooks calculates COGS by using the average cost method
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QuickStart Guide to Accounting for Cost of Goods Sold Copyright © 2019 by reecejr1 and Reece B. Morrel, Jr. JD MBA CPA CGMA AEP®. All Rights Reserved.